smallbusiness.co.uk: Helping your business think big

Email a Friend

Businesspeople more risk-averse than general population

British entrepreneurs demonstrate a far more prudent and risk-averse attitude than the general public, according to a psychological study.

British entrepreneurs demonstrate a far more prudent and risk-averse attitude than the general public, according to a psychological study.

A survey carried out by AXA Business Insurance and Psychological Consultancy Limited, in conjunction with the Association of Business Psychologists, finds that small business owners are far more likely to maintain wary, prudent and deliberate (calculated) traits than the general population.

Contrary to stereotypical perceptions of entrepreneurs as maverick individuals with an inherent appetite for risk, the analysis finds that the majority (52 percent) of respondents fall within one of three risk types: wary (22 per cent), prudent (15.2 per cent) or deliberate (14.8 per cent).

Moreover, the entrepreneurs surveyed showed far less adventurous characteristics (3.6 percent) than the average public (12.8 percent).

Despite the seemingly conservative approach taken by entrepreneurs, the research finds that individuals who are more calm, confident, optimistic, organised, methodical and measured have greater financial resources and may, therefore, be more successful small business owners.

Darrell Sansom, managing director at AXA Business Insurance says, 'We often think of entrepreneurs as being adventurous renegades, renouncing the more common commercial work environment in search of their own fortunes and in support of their passions.

'It’s encouraging to see the level of vigilance they employ when compared with the broader population, as from our experience, those businesses featuring more diligent management teams have traditionally been more successful in the longer term.'

See also: Reduce the risk of crime

Previous article

Businesses held back by local councils

Next article

SME owners putting houses on the line 

Post a comment

Related

News | Opportunities

Risk takers encouraged by insolvency reforms

News | Outlook

Are you a risk-taker?

News | Law

Free risk assessment for your business

News | Management

Donít risk losing employment tribunals

Small Business Offers

More from Small Business

Starting a Business
Tips for successfully obtaining angel investment

Tips for successfully obtaining angel investment

Phil Mitchell presents advice for giving yourself the best chance of picking up equity investment...  

Financing a Business
Why HMRC checks are manageable for your small business

Why HMRC checks are manageable for your small business

Neil Tipping explains the process of HMRC Business Records Checks and what demands are made...  

Running a Business
Four mistakes you're probably making on your website

Four mistakes you're probably making on your website

Here, Alison Curry-Taylor presents the common errors small business owners make when launching their own...  

Blog
Why starting a business from your bedroom beats Silicon Roundabout

Why starting a business from your bedroom beats Silicon Roundabout

Here, Irfon Watkins argues against the trend to centralise start-up activity in certain locations. ...